16.12.202508:52:13UTC+00German Manufacturing Contracts Most in 10 Months

The HCOB Germany Manufacturing PMI decreased to 47.7 in December 2025 from 48.2 in November, falling short of the anticipated 48.5, and representing the most significant decline in ten months, based on preliminary data. Production has reverted to contraction, concluding a nine-month period of expansion, while new orders experienced the fastest decline since January, partly due to a substantial drop in export sales. For the second month in a row, backlogs of work continued to diminish, indicative of weak demand and limited pressure on capacity. Employment within the manufacturing sector declined once more; however, the rate of job losses slightly slowed compared to November. On the pricing front, manufacturers noted an increase in input costs for the first time since January 2023, attributed to escalating commodity prices, especially metals, and protracted supplier delivery times. Despite the weaker current conditions, business sentiment among manufacturers has improved, with optimism regarding the upcoming year reaching a six-month peak.